Veracyte Skyrockets 9.34%—What’s Fueling This Surge?

Summary
• Veracyte (VCYT) surges 9.34% intraday to $26.21, defying a 52-week low of $22.61
• Q2 revenue jumps 14% to $130.2M, smashing estimates by 7.6%
• Decipher Prostate test drives 24% revenue growth, with adjusted EBITDA margin hitting 27.5%

Veracyte’s stock is in a tailwind after a blockbuster Q2 earnings report, with Decipher Prostate’s 28% volume growth and margin expansion sparking a 9.34% intraday rally. The stock’s surge to $26.21—a 9.34% jump from $23.97—has pushed it closer to its 52-week high of $47.32, despite lingering technical indicators like a short-term bearish trend. With options like VCYT20250815C25 trading at 86.36% price change, the market is pricing in aggressive momentum.

Q2 Earnings and Revenue Beat Ignite Rally
Veracyte’s 9.34% intraday surge is directly tied to its Q2 results, which showed 14% year-over-year revenue growth to $130.2 million, exceeding estimates by 7.6%. The Decipher Prostate test, now in its 13th consecutive quarter of >25% volume growth, drove 24% revenue expansion, while adjusted EBITDA margin surged to 27.5%. Management raised 2025 guidance to $496–504 million in revenue, signaling confidence in Decipher’s metastatic prostate cancer expansion and Afirma’s clinical validation. The stock’s breakout above its 200-day MA of $33.80 and 52-week low of $22.61 reflects renewed institutional conviction in its diagnostic dominance.

Options and ETFs to Capitalize on Volatility
• MACD: -0.644 (bearish), Signal Line: -0.741 (bullish divergence), RSI: 48.6 (neutral)
• Bollinger Bands: Price at $26.21 (near upper band of $27.14), 200D MA: $33.80 (above)
• Support/Resistance: 30D support at $23.49, 200D resistance at $26.27

Veracyte’s technicals suggest a volatile setup: RSI at 48.6 hints at equilibrium, while the MACD histogram’s positive shift indicates short-term bullish momentum. The stock is trading near its upper Bollinger Band, suggesting overbought conditions. For options, VCYT20250815C25 (call) and VCYT20250919C30 (call) stand out.

VCYT20250815C25:
• Strike: $25, IV: 33.42%, Delta: 0.88, Theta: -0.117, Gamma: 0.143, Turnover: 9,173
• IV (implied volatility): High volatility expectations
• Delta: High sensitivity to price moves
• Theta: Rapid time decay (short-term play)
• Gamma: Strong sensitivity to price acceleration
• Turnover: High liquidity for entry/exit
Why it works: With a 86.36% price change and 16.18% leverage ratio, this call is ideal for a short-term breakout above $26.27 resistance. A 5% upside to $27.52 would yield a payoff of $2.52 per contract.

VCYT20250919C30:
• Strike: $30, IV: 54.08%, Delta: 0.297, Theta: -0.026, Gamma: 0.069, Turnover: 2,975
• IV: Balanced volatility
• Delta: Moderate sensitivity
• Theta: Slower decay (mid-term play)
• Gamma: Responsive to price swings
• Turnover: Sufficient liquidity
Why it works: The 44.07% price change and 31.21% leverage ratio make this a mid-term play. A 5% move to $27.52 would yield a $0.52 payoff, but its lower delta suits a more conservative approach.

Action: Aggressive bulls should target VCYT20250815C25 for a breakout above $26.27. Conservative traders may use VCYT20250919C30 as a mid-term hedge.

Backtest Veracyte Stock Performance
The backtest of VCYT's performance after a 9% intraday surge shows favorable short-to-medium-term gains, with the 3-Day win rate at 45.90%, the 10-Day win rate at 45.41%, and the 30-Day win rate at 51.15%. The maximum return during the backtest period was 3.83%, which occurred on day 59, indicating that VCYT tends to continue performing well in the immediate aftermath of a significant intraday surge.

Veracyte’s Rally: A Catalyst-Driven Breakout—Act Now
Veracyte’s 9.34% surge is a catalyst-driven breakout fueled by Q2 earnings and Decipher Prostate’s momentum. While technical indicators like the short-term bearish trend and 200D MA resistance at $33.80 suggest caution, the options market is pricing in aggressive upside. Investors should monitor the $26.27 resistance level and consider VCYT20250815C25 for a short-term play. Meanwhile, the sector leader Labcorp (LH) is down 0.38%, highlighting Veracyte’s outperformance. Act now: Buy VCYT20250815C25 if $26.27 breaks, or short-term ETFs if the 200D MA becomes a hurdle.